Nearest Support: $3.50
Catalyst: Earnings Surprise >>5 Stocks Rising on Unusual Volume French communications stock Alcatel-Lucent ( ALU) is up close to 15% this afternoon following the release of the firm's third-quarter earnings numbers. ALU has been struggling in recent quarters, but management was able to trim its losses by cutting costs. The firm ended up losing 200 million euros for the quarter, down from 316 million euros a year ago. From a technical standpoint, Alcatel-Lucent has been on fire since the start of the summer, pushing higher in a well-defined uptrend. While today's jump is huge, it's still short of resistance at $4; traders will need to see that price ceiling get taken out before it makes sense to be a buyer here.
Nearest Support: $17
Catalyst: Earnings/Bribery Settlement >>5 Stocks Insiders Love Right Now Cosmetics maker Avon Products ( AVP), on the other hand, is getting shellacked this afternoon on the heels of its earnings release. AVP reported third-quarter earnings of 14 cents per share, falling short of Wall Street's 19-cent consensus estimate. Worse, the firm announced that a bribery probe settlement proposed by the SEC was likely to come with penalties that would be much larger than expected -- enough to materially impact the business. AVP is off by more than 22% as I write this afternoon. The technical outlook doesn't look much better. AVP broke support at $20 on this morning's gap-down, falling to a $17 support level that hasn't been tested since back in February. AVP was trending lower to begin with, and today's breakdown is icing on the cake. I'd recommend keeping clear of this name for the foreseeable future; don't try to catch the falling knife. MGM Resorts International Nearest Resistance: $20
Nearest Support: $17
Catalyst: Earnings Miss >>Hack Earnings Season With These Serial Surprisers MGM Resorts International ( MGM) reported its own earnings miss to Wall Street this morning, losing 7 cents per share for the quarter. That's three cents shy of the 3-cent loss that analysts were expecting. MGM is capping off a stellar 65% year-to-date rally with a 6% earnings-induced drop today, and the decline could deepen before we reach year end. That's because MGM's drop this morning marks the official beginning of a downtrend in the casino stock. Shares had been holding firm at $20 support, but that broke definitively this morning. From here, $17 looks like the next spot where MGM could see another glut of demand, but I'd recommend staying away until the downtrend can actually get snuffed out. Expedia Nearest Resistance: $66
Nearest Support: $54
Catalyst: Earnings >>4 Stocks Triggering Big Breakout Trades Last up is Expedia ( EXPE). The $8 billion travel site is up more than 16% in this afternoon's session following better-than-expected earnings released after the bell yesterday. EXPE reported third-quarter earnings of $1.43 per share, an improvement on the $1.35 average guess that analysts were hoping for. That's yet another year of double-digit growth for Expedia, and it's giving investors another excuse to look at this stock after a volatile year of trading.
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